Co-founder Of IndiGo Raises $820 Million In A Block Sale Agreement

By Consultants Review Team Monday, 11 March 2024

Positive news for IndiGo, the largest airline in India: one of its co-founders raised almost USD 820 million by selling a portion of the company. Since 2019, this has become the nation's largest block equity sale. Rakesh Gangwal reportedly sold 22.5 million InterGlobe Aviation Ltd. shares for Rs 3,015.10 a share.

The final price was higher than the floor indication of Rs 2,925 per share, and more shares were sold than the 12.75 million originally anticipated. The article went on to say that Gangwal is profiting from the fact that the stock is almost at a record high due to the demand for Indian shares being driven by robust corporate results and a rapidly expanding retail investor base.

The co-founder has raised money from investors through a block sale of IndiGo shares four times in the last two years. In response to the news, InterGlobe Aviation's shares fell 3% in early trading on March 11 following the transfer of a 6.7% interest in a block deal for Rs 7,823 crore.

Rakesh Gangwal was advised by investment firms Morgan Stanley, JP Morgan, and Goldman Sachs. According to records, he and his family trust jointly possess around 25% of InterGlobe Aviation.
It is important to note that Rakesh Gangwal indicated plans to reduce his family's ownership in the company when he stepped down in February 2022. He then sold a 4% share for Rs 2,900 crore and, in September, another 2.8% stake for Rs 2,000 crore. His family sold a $450 million interest in August.

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